IT services provider Cognizant's Q3 profit beats on North America performance

Cognizant Technology Solutions

29/10/2025 10:39

Overview

Cognizant Q3 revenue grows 7.4% yr/yr, beating analyst expectations

Adjusted EPS for Q3 rises 11% yr/yr, surpassing analyst estimates

Company raises 2025 revenue growth guidance to 6.0%-6.3% in constant currency

Outlook

Cognizant expects Q4 revenue of $5.27 bln to $5.33 bln

Full-year 2025 revenue forecasted at $21.05 bln to $21.10 bln

2025 adjusted EPS expected between $5.22 and $5.26

Result Drivers

NORTH AMERICA AND SEGMENTS - Revenue growth driven by strong performance in North America and organic growth across all segments

ACQUISITIONS - Recent acquisitions contributed 250 basis points to year-over-year revenue growth

LARGE DEAL MOMENTUM - Six large deals signed in Q3, contributing to 40% growth in large deal TCV year-to-date

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$5.42 bln
$5.31 bln (19 Analysts)
Q3 Adjusted EPS
Beat
$1.39
$1.30 (20 Analysts)
Q3 EPS
$0.56
Q3 Adjusted Operating Margin
16%
Q3 Operating Income
$866 mln
Q3 Operating Margin
16%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Cognizant Technology Solutions Corp is $84.00, about 19.3% above its October 28 closing price of $67.82

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn9k0sdja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)